Mortgage release.
khalid masood
(Querist) 17 June 2012
This query is : Open
My client has given 2 properties as collateral security to a nationalised bank for availing some overdraft facilities. His has been a loan account for the last ten years. His loan account has been classified as NPA for the last one and half years and bank has tried to sell his properties in public auction after serving SARFEASI notice,but it could not succeed due to want of buyers. My client has got customer for one of the two properties and hence he took him to the bank and asked for redemption of that particular property.But bank is against this proposal and suggested that unless he brings customer for both the properties they cannot release the mortgage.When my client pointed out that 75% of the debt would be cleared by selling of this one asset and he would bring customer for the second asset after some time they did not budge. They seem to have told my client that partial release of mortgage is not possible as rules do not permit them.Can any one of the experts throw some light on this issue. When my client persisted with his demand saying that principal along with interest is accumulating bank was ready to accept this proposal but refused to release the title papers of that property and also says that they would not issue mortgage discharge letter pertaining to that property. More ever he was told that they would release the title papers only when both the properties are sold. My question is whether partial discharge of mortgage is possible or not? Why cant bank give title deeds and NOC for this particular property? Thanking u in advance.
